Posts filed under 'alexi giannoulias'
February 7th, 2008
First it was slowing state revenue, thanks to the slowing economy. Now it’s slowing interest income on the state’s investments, thanks to the slowing economy.
Over the next two years, that lost interest income could add up to real money, and that could only aggravate the state’s deteriorating fiscal position. So says a letter released Thursday from state Treasurer Alexi Giannoulias.
In the last fiscal year, which ended last June 30, Giannoulias said the state earned nearly $426 million on its investments. But during the current fiscal year, which ends June 30, he predicted the interest income would total less than $400 million.
The big hit is expected to occur in the next fiscal year, which begins July 1. Giannoulias predicted interest income could drop by roughly half:
The state will feel the full impact of the lower rates and asset size in fiscal year 2009 when we project that interest income will only total between $184 million and $243 million. Previous economic downturns produced declining yields and declining investment balances for up to two years.
Even if the yields return to fiscal year 2007 levels faster than anticipated, total interest income will probably not rise to previous levels because the amount of funds invested will still be smaller. We anticipate that our interest income will not recover to fiscal year 2007 levels for quite some time.
The treasurer concludes:
This anticipated reduction in interest income poses significant challenges for the state’s fiscal outlook going forward, and I urge the Governor and members of the General Assembly to provide the fiscal responsibility and leadership necessary to offset this decline. At the same time, the State Treasurer’s Office will work to further enhance the state portfolio and continue to protect and secure state investments from unnecessary risk.
The interest income is allocated under a statutory formula. In the last fiscal year, the state’s general revenue fund — its central checking account — got 47 percent of the dollars. The rest went to special-purpose funds.
UPDATE 1
The State Journal-Register has more.
UPDATE 2
I should have noted this earlier. State officials are mulling a short-term borrowing plan to help play down a backlog of bills.
January 16th, 2008
State Treasurer Alexi Giannoulias keeps a low profile, which in the climate of Illinois politics is probably a prudent approach.
He’s just beginning his second year as treasurer, his first public office. The treasurer is the state’s banker, so a treasurer’s opportunity for public exposure is relatively limited.
Moreover, Giannoulias is the newcomer Chicago Democrat on a scene dominated by Chicago Democrats with huge egos. (Specifically, I’m referring to Gov. Blagojevich, Senate President Emil Jones Jr. House Speaker Michael Madigan.) It doesn’t serve Giannoulias’ political interest to make a fuss, potentially alienating powers that be, right off the bat.
Nonetheless, this didn’t stop him from having some fun today with a hot, politically-charged topic: Blagojevich’s decision to amend a mass transit bailout bill by inserting language requiring mass transit districts around Illinois to grant free rides to seniors.
Blagojevich’s move took the Capitol by surprise and is overwhelming the discussion here. It’s classic Blagojevich: To deflect attention from a point he’d rather not see played up (the fact that he violated his no-tax-increase pledge by accepting the regional sales tax hike embodied in the mass transit bill), he created a diversion (loudly insisting on free rides for seniors, without first consulting with legislators or mass transit officials).
Giannoulias on Wednesday called a news conference to discuss his office’s handling of a state loan made to a Springfield hotel, and he kicked it off with a joke.
“We’re here today to announce that all senior citizens are gonna get a free hotel stay,” he said, drawing laughter from reporters.
Hey, at least the guy has a sense of humor.
Later, on a more serious note, Giannoulias described his impression of the governor’s move.
“Listen, I love my grandma. I love senior citizens,” he said.
“I don’t think it was done in the best way possible. It’s not like they’ve been talking about this for six months or a year, about senior citizens. So to throw it on someone, and a vote (inaudible) takes place, to me seems a little disingenuous. But I’m new to this whole political world so I’m learning every day.”
January 16th, 2008
In Illinois, there’s often little distinction between politics and government. Where does one end and the other begin?Virtually every action by Gov. Blagojevich appears designed to benefit him politically. In the General Assembly, legislative leaders structure votes to help protect their members most vulnerable in the next election.
Then again, there are some hard rules, such as this one: Public officials are not supposed to conduct campaign activities on state property. They shouldn’t be making campaign phone calls and printing campaign brochures and so forth.
But should they talk about politics when they show up in the Blue Room, a room set aside in the Capitol for news conferences, to address government matters?
Such was the question today when state Treasurer Alexi Giannoulias appeared in the Blue Room to talk about his office’s handling of a state loan made to a Springfield hotel. Near the end of his news conference, reporters asked him about his campaigning for Barack Obama, the U.S. senator from Illinois and presidential candidate who was instrumental in helping Giannoulias win the treasurer’s office in 2006.
Giannoulias began answering the questions when his general counsel, who joined him at the news conference, approached him and whispered: “We prefer that you not, during state time, talk about politics.”
“Oh,” Giannoulias remarked aloud, “we’re not allowed to talk about politics on state time.”
Reporters weren’t having it. My colleague Bernie Schoenburg, the SJ-R’s political columnist, informed the treasurer: “This is the Blue Room. People do come in here and discuss campaigns.”
At least one other reporter backed him up on that.
Schoenburg was right. Politicians and government officials do routinely appear in the Blue Room and discuss politics, even on state time. This is Illinois. As I said, the line is blurred.
Giannoulias proceeded to answer a few questions about the Obama campaign.
But let’s give credit where credit is due. In Illinois, where public corruption is endemic, at least one state official is concerned about the appearance of misconduct. I’m beside myself.
